WASHINGTON, DC – Today, Fannie Mae (FNMA/OTCQB) announced it has started marketing its latest batch of reperforming loans, continuing its strategy to downsize its retained mortgage portfolio.
This offering includes about 6,507 loans with a collective unpaid principal of roughly $1.470 billion, open for purchase by eligible bidders. Interested parties can sign up to bid.
The sale is conducted in partnership with Citigroup Global Markets, Inc., with bids scheduled to be submitted by May 9, 2024.
Reperforming loans are those that were previously delinquent but have since shown consistent repayment performance. The conditions of this sale require the purchaser to provide loss mitigation options to borrowers at risk of defaulting again within the next five years post-sale. Buyers must also respect any existing or in-process loss mitigation actions, such as forbearance agreements and loan modifications. Furthermore, before moving forward with foreclosure processes, buyers must offer a series of loss mitigation solutions to delinquent borrowers, potentially including principal reduction.
For more information, read the original press release from: https://www.fanniemae.com/newsroom/fannie-mae-news/sale-reperforming-loans-apr-2024